{"id":1067,"date":"2021-04-10T21:46:02","date_gmt":"2021-04-10T21:46:02","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-managerialaccounting\/?post_type=chapter&#038;p=1067"},"modified":"2021-06-11T05:44:03","modified_gmt":"2021-06-11T05:44:03","slug":"direct-labor-budget","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/chapter\/direct-labor-budget\/","title":{"raw":"Direct Labor Budget","rendered":"Direct Labor Budget"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Prepare a direct labor budget<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"aligncenter wp-image-1435\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5469\/2021\/04\/07220915\/Screen-Shot-2021-05-07-at-3.08.51-PM-300x260.png\" alt=\"A flowchart titled \u201cTypes of Budgets\u201d. The labor budget is highlighted in yellow. At the top is the sales budget. The sales budget has two arrows pointing to the production budget and the SG&amp;A budget. The production budget has three arrows pointing to the materials budget, labor budget, and manufacturing overhead budget. Those three budgets are all pointing to the cost of goods sold budget. The sales, production, materials, labor, manufacturing overhead, cost of goods sold, and SG&amp;A budget boxes are all blue and there is a bracket labeling those as the operating budget. Below the operating budget is a horizontal line showing the capital expenditures budget in red on the left, and going to the right from there, an arrow pointing to the cash budget, with another arrow pointing to the budgeted income statement, and a final arrow pointing to the budgeted balance sheet. The cash budget, budgeted income statement, and budgeted balance sheet are all green and there is a bracket labeling those as the operating budget. There are also arrows pointing from the cost of goods sold budget and the SG&amp;A budget to the cash budget.\" width=\"500\" height=\"433\" \/>\r\n\r\nThe direct labor budget is relatively simple. We need to know the units required from the production budget. Next, we need to know how many direct labor hours it takes to complete one unit and the cost per labor hour. Using this information, we can determine how many direct labor hours are required to meet the budgeted level of production. We will take the production units x direct labor per unit to get the number of direct labor hours. Finally, we will take the direct labor hours x the rate per hour.\r\n\r\nGelSoft has set a standard of 0.25 hours of direct labor for each gel seat produced at a standard hourly rate of $40 per hour that includes benefits and taxes. The direct labor budget for the year would be:\r\n\r\nUnits to be manufactured * hours per unit * labor cost per hour\r\n\r\n158,605 units * 0.25 hours per unit * $40 per hour = $1,586,040 total direct labor cost\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nDirect Labor Budget<\/caption>\r\n<thead>\r\n<tr class=\"u-sr-only\">\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Amount<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Budgeted units to be produced<\/td>\r\n<td class=\"r\">158,605<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Direct Labor per unit in hours<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total direct labor hours needed<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>39,651<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Projected labor cost per hour<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Budgeted cost of direct labor<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,586,040<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nThis seems fairly straight-forward, but budgeting quarterly reveals a problem:\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nDirect Labor Budget<\/caption>\r\n<tbody>\r\n<tr>\r\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">Q1<\/th>\r\n<th class=\"r\" scope=\"col\">Q2<\/th>\r\n<th class=\"r\" scope=\"col\">Q3<\/th>\r\n<th class=\"r\" scope=\"col\">Q4<\/th>\r\n<th class=\"r\" scope=\"col\">Year<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr>\r\n<td>Budgeted units to be produced<\/td>\r\n<td class=\"r\">24,000<\/td>\r\n<td class=\"r\">42,700<\/td>\r\n<td class=\"r\">44,800<\/td>\r\n<td class=\"r\">47,105<\/td>\r\n<td class=\"r\">158,605<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Direct Labor per unit in hours<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total direct labor hours needed<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>6,000<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>10,675<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>11,200<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>11,776<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>39,651<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Projected labor cost per hour<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Budgeted cost of direct labor<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$240,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$427,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$448,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$471,040<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,586,040<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nIf we assume the company is operating 13 weeks per quarter (52 weeks per year) then the number of employees, measured by full-time equivalents (FTE) needed to work in Q1 is 12. Twelve full-time employees working 40-hour shifts for 13 weeks = 6,240 hours.\r\n\r\nHowever, for Q2, Q3, and Q4, we need 21 to 23 FTE. Assuming at present the company has 20 full-time workers (20 workers * 40 hours per week * 13 weeks = 10,400 hours) then, according to the above schedule, the company would have to lay off 8 FTE during Q1 in order to reduce production and therefore deplete beginning inventory by the end of Q1. That may not be practical.\r\n\r\nTherefore, the budget team will probably revise the quarterly production schedule to phase-out beginning inventory over the year, rather than in one quarter:\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nProduction Budget in Units - Revised to phase-out beginning inventory gradually<\/caption>\r\n<tbody>\r\n<tr>\r\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">Q1<\/th>\r\n<th class=\"r\" scope=\"col\">Q2<\/th>\r\n<th class=\"r\" scope=\"col\">Q3<\/th>\r\n<th class=\"r\" scope=\"col\">Q4<\/th>\r\n<th class=\"r\" scope=\"col\">Year<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr>\r\n<td>Budgeted\/Project sales, in units<\/td>\r\n<td class=\"r\">40,000<\/td>\r\n<td class=\"r\">42,000<\/td>\r\n<td class=\"r\">44,100<\/td>\r\n<td class=\"r\">46,305<\/td>\r\n<td class=\"r\">172,405<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Plus: ending inventory target<\/td>\r\n<td class=\"r highlight\">27,000<\/td>\r\n<td class=\"r highlight\">24,000<\/td>\r\n<td class=\"r highlight\">21,000<\/td>\r\n<td class=\"r\">16,200<\/td>\r\n<td class=\"r\">16,200<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total units needed to meet goals<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>67,000<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>66,000<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>65,100<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>62,505<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>188,605<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Less: units in beginning inventory<\/td>\r\n<td class=\"r\">30,000<\/td>\r\n<td class=\"r\">27,000<\/td>\r\n<td class=\"r\">24,000<\/td>\r\n<td class=\"r\">21,000<\/td>\r\n<td class=\"r\">30,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Units needed to be produced to meet goals<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>37,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>39,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>41,100<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>41,505<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>158,605<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nWhich will also change the quarterly production budget:\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nDirect Materials Budget - revised<\/caption>\r\n<tbody>\r\n<tr>\r\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">Q1<\/th>\r\n<th class=\"r\" scope=\"col\">Q2<\/th>\r\n<th class=\"r\" scope=\"col\">Q3<\/th>\r\n<th class=\"r\" scope=\"col\">Q4<\/th>\r\n<th class=\"r\" scope=\"col\">Year<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr>\r\n<td>Budgeted units to be produced<\/td>\r\n<td class=\"r\">37,000<\/td>\r\n<td class=\"r\">39,000<\/td>\r\n<td class=\"r\">41,100<\/td>\r\n<td class=\"r\">41,505<\/td>\r\n<td class=\"r\">158,605<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Direct materials needed per unit (Kg)<\/td>\r\n<td class=\"r\">0.680<\/td>\r\n<td class=\"r\">0.680<\/td>\r\n<td class=\"r\">0.680<\/td>\r\n<td class=\"r\">0.680<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Kg direct materials needed<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>25,160<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>26,520<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>27,948<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>28,223<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>107,851<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Plus: desired DM in ending inventory (Kg)<\/td>\r\n<td class=\"r\">8,800<\/td>\r\n<td class=\"r\">9,300<\/td>\r\n<td class=\"r\">9,400<\/td>\r\n<td class=\"r\">11,200<\/td>\r\n<td class=\"r\">11,200<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Less: DM in beginning inventory (Kg)<\/td>\r\n<td class=\"r\">(25,000)<\/td>\r\n<td class=\"r\">(8,800)<\/td>\r\n<td class=\"r\">(9,300)<\/td>\r\n<td class=\"r\">(9,400)<\/td>\r\n<td class=\"r\">(25,000)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Budgeted purchase of direct materials<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>8,960<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>27,020<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>28,048<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>30,023<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>94,051<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Projected cost per Kg<\/td>\r\n<td class=\"r\">$11<\/td>\r\n<td class=\"r\">$11<\/td>\r\n<td class=\"r\">$11<\/td>\r\n<td class=\"r\">$11<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Budgeted cost of direct materials to be purchased<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$98,560<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$297,220<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$308,528<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$330,253<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,034,561<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\nAnd the direct labor budget:\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nDirect Labor Budget - revised<\/caption>\r\n<tbody>\r\n<tr>\r\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">Q1<\/th>\r\n<th class=\"r\" scope=\"col\">Q2<\/th>\r\n<th class=\"r\" scope=\"col\">Q3<\/th>\r\n<th class=\"r\" scope=\"col\">Q4<\/th>\r\n<th class=\"r\" scope=\"col\">Year<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr>\r\n<td>Budgeted units to be produced<\/td>\r\n<td class=\"r\">37,000<\/td>\r\n<td class=\"r\">39,000<\/td>\r\n<td class=\"r\">41,100<\/td>\r\n<td class=\"r\">41,505<\/td>\r\n<td class=\"r\">158,605<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Direct Labor per unit in hours<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td class=\"r\">0.250<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total direct labor hours needed<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>9,250<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>9,750<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>10,275<\/td>\r\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>10,376<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>39,651<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Projected labor cost per hour<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td class=\"r\">$40<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Budgeted cost of direct labor<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$370,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$390,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$411,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$415,040<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,586,040<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nThe revision balances out the reduction of inventory and the direct labor needs. This is why quarterly or monthly budgets are important in addition to the annual budget.\r\n\r\nNotice that the totals do not change, only the quarterly materials and labor requirements.\r\n\r\nBased on this revised production budget, FTE needs by quarter are as follows (based on direct hours needed divided by 13 weeks divided by 40 hours per week):\r\n<p style=\"padding-left: 30px;\">Q1 - 18 FTE<\/p>\r\n<p style=\"padding-left: 30px;\">Q2 - 19 FTE<\/p>\r\n<p style=\"padding-left: 30px;\">Q3 - 20 FTE<\/p>\r\n<p style=\"padding-left: 30px;\">Q4 - 20 FTE<\/p>\r\nWe\u2019ll use this revised production budget for the rest of this example as it continues to unfold in this section on the operating budget.\r\n\r\nHere is a short video on how to compile a direct labor budget.\r\n\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=6352579&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=sqUuV_Y5TYM&amp;video_target=tpm-plugin-dauj8kx7-sqUuV_Y5TYM\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n\r\nYou can view the <a href=\"https:\/\/oerfiles.s3.us-west-2.amazonaws.com\/Managerial+Accounting\/Transcripts\/DirectLaborBudget_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"Direct Labor Budget\" here (opens in new window)<\/a>.\r\n\r\nNow, check your understanding of the direct labor budget.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\n[ohm_question hide_question_numbers=1]220596[\/ohm_question]\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Prepare a direct labor budget<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1435\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5469\/2021\/04\/07220915\/Screen-Shot-2021-05-07-at-3.08.51-PM-300x260.png\" alt=\"A flowchart titled \u201cTypes of Budgets\u201d. The labor budget is highlighted in yellow. At the top is the sales budget. The sales budget has two arrows pointing to the production budget and the SG&amp;A budget. The production budget has three arrows pointing to the materials budget, labor budget, and manufacturing overhead budget. Those three budgets are all pointing to the cost of goods sold budget. The sales, production, materials, labor, manufacturing overhead, cost of goods sold, and SG&amp;A budget boxes are all blue and there is a bracket labeling those as the operating budget. Below the operating budget is a horizontal line showing the capital expenditures budget in red on the left, and going to the right from there, an arrow pointing to the cash budget, with another arrow pointing to the budgeted income statement, and a final arrow pointing to the budgeted balance sheet. The cash budget, budgeted income statement, and budgeted balance sheet are all green and there is a bracket labeling those as the operating budget. There are also arrows pointing from the cost of goods sold budget and the SG&amp;A budget to the cash budget.\" width=\"500\" height=\"433\" \/><\/p>\n<p>The direct labor budget is relatively simple. We need to know the units required from the production budget. Next, we need to know how many direct labor hours it takes to complete one unit and the cost per labor hour. Using this information, we can determine how many direct labor hours are required to meet the budgeted level of production. We will take the production units x direct labor per unit to get the number of direct labor hours. Finally, we will take the direct labor hours x the rate per hour.<\/p>\n<p>GelSoft has set a standard of 0.25 hours of direct labor for each gel seat produced at a standard hourly rate of $40 per hour that includes benefits and taxes. The direct labor budget for the year would be:<\/p>\n<p>Units to be manufactured * hours per unit * labor cost per hour<\/p>\n<p>158,605 units * 0.25 hours per unit * $40 per hour = $1,586,040 total direct labor cost<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nDirect Labor Budget<\/caption>\n<thead>\n<tr class=\"u-sr-only\">\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Budgeted units to be produced<\/td>\n<td class=\"r\">158,605<\/td>\n<\/tr>\n<tr>\n<td>Direct Labor per unit in hours<\/td>\n<td class=\"r\">0.250<\/td>\n<\/tr>\n<tr>\n<td>Total direct labor hours needed<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>39,651<\/td>\n<\/tr>\n<tr>\n<td>Projected labor cost per hour<\/td>\n<td class=\"r\">$40<\/td>\n<\/tr>\n<tr>\n<td>Budgeted cost of direct labor<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,586,040<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>This seems fairly straight-forward, but budgeting quarterly reveals a problem:<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nDirect Labor Budget<\/caption>\n<tbody>\n<tr>\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">Q1<\/th>\n<th class=\"r\" scope=\"col\">Q2<\/th>\n<th class=\"r\" scope=\"col\">Q3<\/th>\n<th class=\"r\" scope=\"col\">Q4<\/th>\n<th class=\"r\" scope=\"col\">Year<\/th>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr>\n<td>Budgeted units to be produced<\/td>\n<td class=\"r\">24,000<\/td>\n<td class=\"r\">42,700<\/td>\n<td class=\"r\">44,800<\/td>\n<td class=\"r\">47,105<\/td>\n<td class=\"r\">158,605<\/td>\n<\/tr>\n<tr>\n<td>Direct Labor per unit in hours<\/td>\n<td class=\"r\">0.250<\/td>\n<td class=\"r\">0.250<\/td>\n<td class=\"r\">0.250<\/td>\n<td class=\"r\">0.250<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Total direct labor hours needed<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>6,000<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>10,675<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>11,200<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>11,776<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>39,651<\/td>\n<\/tr>\n<tr>\n<td>Projected labor cost per hour<\/td>\n<td class=\"r\">$40<\/td>\n<td class=\"r\">$40<\/td>\n<td class=\"r\">$40<\/td>\n<td class=\"r\">$40<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Budgeted cost of direct labor<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$240,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$427,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$448,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$471,040<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,586,040<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>If we assume the company is operating 13 weeks per quarter (52 weeks per year) then the number of employees, measured by full-time equivalents (FTE) needed to work in Q1 is 12. Twelve full-time employees working 40-hour shifts for 13 weeks = 6,240 hours.<\/p>\n<p>However, for Q2, Q3, and Q4, we need 21 to 23 FTE. Assuming at present the company has 20 full-time workers (20 workers * 40 hours per week * 13 weeks = 10,400 hours) then, according to the above schedule, the company would have to lay off 8 FTE during Q1 in order to reduce production and therefore deplete beginning inventory by the end of Q1. That may not be practical.<\/p>\n<p>Therefore, the budget team will probably revise the quarterly production schedule to phase-out beginning inventory over the year, rather than in one quarter:<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nProduction Budget in Units &#8211; Revised to phase-out beginning inventory gradually<\/caption>\n<tbody>\n<tr>\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">Q1<\/th>\n<th class=\"r\" scope=\"col\">Q2<\/th>\n<th class=\"r\" scope=\"col\">Q3<\/th>\n<th class=\"r\" scope=\"col\">Q4<\/th>\n<th class=\"r\" scope=\"col\">Year<\/th>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr>\n<td>Budgeted\/Project sales, in units<\/td>\n<td class=\"r\">40,000<\/td>\n<td class=\"r\">42,000<\/td>\n<td class=\"r\">44,100<\/td>\n<td class=\"r\">46,305<\/td>\n<td class=\"r\">172,405<\/td>\n<\/tr>\n<tr>\n<td>Plus: ending inventory target<\/td>\n<td class=\"r highlight\">27,000<\/td>\n<td class=\"r highlight\">24,000<\/td>\n<td class=\"r highlight\">21,000<\/td>\n<td class=\"r\">16,200<\/td>\n<td class=\"r\">16,200<\/td>\n<\/tr>\n<tr>\n<td>Total units needed to meet goals<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>67,000<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>66,000<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>65,100<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>62,505<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>188,605<\/td>\n<\/tr>\n<tr>\n<td>Less: units in beginning inventory<\/td>\n<td class=\"r\">30,000<\/td>\n<td class=\"r\">27,000<\/td>\n<td class=\"r\">24,000<\/td>\n<td class=\"r\">21,000<\/td>\n<td class=\"r\">30,000<\/td>\n<\/tr>\n<tr>\n<td>Units needed to be produced to meet goals<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>37,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>39,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>41,100<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>41,505<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>158,605<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Which will also change the quarterly production budget:<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nDirect Materials Budget &#8211; revised<\/caption>\n<tbody>\n<tr>\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">Q1<\/th>\n<th class=\"r\" scope=\"col\">Q2<\/th>\n<th class=\"r\" scope=\"col\">Q3<\/th>\n<th class=\"r\" scope=\"col\">Q4<\/th>\n<th class=\"r\" scope=\"col\">Year<\/th>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr>\n<td>Budgeted units to be produced<\/td>\n<td class=\"r\">37,000<\/td>\n<td class=\"r\">39,000<\/td>\n<td class=\"r\">41,100<\/td>\n<td class=\"r\">41,505<\/td>\n<td class=\"r\">158,605<\/td>\n<\/tr>\n<tr>\n<td>Direct materials needed per unit (Kg)<\/td>\n<td class=\"r\">0.680<\/td>\n<td class=\"r\">0.680<\/td>\n<td class=\"r\">0.680<\/td>\n<td class=\"r\">0.680<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Total Kg direct materials needed<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>25,160<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>26,520<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>27,948<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>28,223<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>107,851<\/td>\n<\/tr>\n<tr>\n<td>Plus: desired DM in ending inventory (Kg)<\/td>\n<td class=\"r\">8,800<\/td>\n<td class=\"r\">9,300<\/td>\n<td class=\"r\">9,400<\/td>\n<td class=\"r\">11,200<\/td>\n<td class=\"r\">11,200<\/td>\n<\/tr>\n<tr>\n<td>Less: DM in beginning inventory (Kg)<\/td>\n<td class=\"r\">(25,000)<\/td>\n<td class=\"r\">(8,800)<\/td>\n<td class=\"r\">(9,300)<\/td>\n<td class=\"r\">(9,400)<\/td>\n<td class=\"r\">(25,000)<\/td>\n<\/tr>\n<tr>\n<td>Budgeted purchase of direct materials<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>8,960<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>27,020<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>28,048<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>30,023<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>94,051<\/td>\n<\/tr>\n<tr>\n<td>Projected cost per Kg<\/td>\n<td class=\"r\">$11<\/td>\n<td class=\"r\">$11<\/td>\n<td class=\"r\">$11<\/td>\n<td class=\"r\">$11<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Budgeted cost of direct materials to be purchased<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$98,560<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$297,220<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$308,528<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$330,253<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,034,561<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>And the direct labor budget:<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nDirect Labor Budget &#8211; revised<\/caption>\n<tbody>\n<tr>\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">Q1<\/th>\n<th class=\"r\" scope=\"col\">Q2<\/th>\n<th class=\"r\" scope=\"col\">Q3<\/th>\n<th class=\"r\" scope=\"col\">Q4<\/th>\n<th class=\"r\" scope=\"col\">Year<\/th>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr>\n<td>Budgeted units to be produced<\/td>\n<td class=\"r\">37,000<\/td>\n<td class=\"r\">39,000<\/td>\n<td class=\"r\">41,100<\/td>\n<td class=\"r\">41,505<\/td>\n<td class=\"r\">158,605<\/td>\n<\/tr>\n<tr>\n<td>Direct Labor per unit in hours<\/td>\n<td class=\"r\">0.250<\/td>\n<td class=\"r\">0.250<\/td>\n<td class=\"r\">0.250<\/td>\n<td class=\"r\">0.250<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Total direct labor hours needed<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>9,250<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>9,750<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>10,275<\/td>\n<td class=\"r highlight line-single\"><span class=\"u-sr-only\">Single Line<\/span>10,376<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>39,651<\/td>\n<\/tr>\n<tr>\n<td>Projected labor cost per hour<\/td>\n<td class=\"r\">$40<\/td>\n<td class=\"r\">$40<\/td>\n<td class=\"r\">$40<\/td>\n<td class=\"r\">$40<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Budgeted cost of direct labor<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$370,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$390,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$411,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$415,040<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,586,040<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>The revision balances out the reduction of inventory and the direct labor needs. This is why quarterly or monthly budgets are important in addition to the annual budget.<\/p>\n<p>Notice that the totals do not change, only the quarterly materials and labor requirements.<\/p>\n<p>Based on this revised production budget, FTE needs by quarter are as follows (based on direct hours needed divided by 13 weeks divided by 40 hours per week):<\/p>\n<p style=\"padding-left: 30px;\">Q1 &#8211; 18 FTE<\/p>\n<p style=\"padding-left: 30px;\">Q2 &#8211; 19 FTE<\/p>\n<p style=\"padding-left: 30px;\">Q3 &#8211; 20 FTE<\/p>\n<p style=\"padding-left: 30px;\">Q4 &#8211; 20 FTE<\/p>\n<p>We\u2019ll use this revised production budget for the rest of this example as it continues to unfold in this section on the operating budget.<\/p>\n<p>Here is a short video on how to compile a direct labor budget.<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=6352579&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=sqUuV_Y5TYM&amp;video_target=tpm-plugin-dauj8kx7-sqUuV_Y5TYM\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p>You can view the <a href=\"https:\/\/oerfiles.s3.us-west-2.amazonaws.com\/Managerial+Accounting\/Transcripts\/DirectLaborBudget_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;Direct Labor Budget&#8221; here (opens in new window)<\/a>.<\/p>\n<p>Now, check your understanding of the direct labor budget.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p><iframe loading=\"lazy\" id=\"ohm220596\" class=\"resizable\" src=\"https:\/\/ohm.lumenlearning.com\/multiembedq.php?id=220596&theme=oea&iframe_resize_id=ohm220596\" width=\"100%\" height=\"150\"><\/iframe><\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-1067\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Direct Labor Budget. <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Accounting Principles: A Business Perspective. <strong>Authored by<\/strong>: James Don Edwards, University of Georgia &amp; Roger H. Hermanson, Georgia State University. <strong>Provided by<\/strong>: Endeavour International Corporation. <strong>Project<\/strong>: The Global Text Project. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Direct labor Budget. <strong>Authored by<\/strong>: Kristin Ingram. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/sqUuV_Y5TYM\">https:\/\/youtu.be\/sqUuV_Y5TYM<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":364389,"menu_order":10,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Direct Labor Budget\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Accounting Principles: A Business Perspective\",\"author\":\"James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University\",\"organization\":\"Endeavour International Corporation\",\"url\":\"\",\"project\":\"The Global Text Project\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Direct labor Budget\",\"author\":\"Kristin Ingram\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/sqUuV_Y5TYM\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-1067","chapter","type-chapter","status-publish","hentry"],"part":33,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/users\/364389"}],"version-history":[{"count":9,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1067\/revisions"}],"predecessor-version":[{"id":2192,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1067\/revisions\/2192"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/parts\/33"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1067\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/media?parent=1067"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=1067"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/contributor?post=1067"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/license?post=1067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}